Report on the Energy Sector in Slovenia for 2017

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Report on the Energy Sector in Slovenia for 2017 REPORT ON THE ENERGY SECTOR IN SLOVENIA REPORT ON THE ENERGY SECTOR IN SLOVENIA 2017 1 Foreword �������������������������������������������������������������������������������������������� 4 2 Development in the energy markets �������������������������������������������������������������������� 6 2.1 The development of the electricity market ���������������������������������������������������������������� 8 2.2 The development of the natural gas market ��������������������������������������������������������������� 8 2.3 Ownership of energy companies ����������������������������������������������������������������������� 9 3 Electricity ������������������������������������������������������������������������������������������� 12 3.1 The balance of electricity supply and demand ������������������������������������������������������������ 14 3.1.1 Electricity generation ������������������������������������������������������������������������ 18 3.1.2 Electricity consumption ����������������������������������������������������������������������� 21 3.1.3 Dependency on electricity imports �������������������������������������������������������������� 23 3.2 Production of electricity from RES and CHP �������������������������������������������������������������� 24 3.2.1 The RES and CHP support scheme ��������������������������������������������������������������� 25 3.2.1.1 Selected projects for RES and CHP installations under public tenders ����������������������������� 26 3.2.1.2 Production facilities included in the RES and CHP support scheme in the period 2010–2017 ����������� 31 3.2.1.3 Electricity produced in the RES and CHP support scheme �������������������������������������� 32 3.2.1.4 Support payments �������������������������������������������������������������������� 33 3.2.1.5 The costs of the support scheme and financial contribution of end consumer for the provision of support ��� 35 3.3 The regulation and regulated activities ����������������������������������������������������������������� 37 3.3.1 The unbundling of services �������������������������������������������������������������������� 37 3.3.2 Technical functioning ������������������������������������������������������������������������ 37 3.3.2.1 The provision of ancillary services �������������������������������������������������������� 37 3.3.2.2 The balancing and imbalance settlement �������������������������������������������������� 40 3.3.2.3 Security and reliability of operation, and quality of supply ������������������������������������� 43 3.3.2.4 Multi-year development plan of the electricity network ��������������������������������������� 50 CASE STUDY: The effectiveness of customer engagement in demand response by using dynamic tariff �������������������� 58 3.3.3 Network charges for the transmission and distribution networks ��������������������������������������� 61 3.3.3.1 Setting the network charge ������������������������������������������������������������� 61 3.3.3.2 The charging for the network charge ������������������������������������������������������ 63 3.3.4 The allocation and use of cross-zonal transmission capacity ������������������������������������������� 64 3.3.5 Ensuring compliance with energy legislation ������������������������������������������������������ 69 3.4 Promoting competition ����������������������������������������������������������������������������� 69 3.4.1 Wholesale market ��������������������������������������������������������������������������� 69 3.4.1.1 Electricity prices ��������������������������������������������������������������������� 70 3.4.1.2 Market transparency ������������������������������������������������������������������ 76 3.4.1.3 The level of market effectiveness ��������������������������������������������������������� 78 3.4.2 Retail market ������������������������������������������������������������������������������� 83 3.4.2.1 Retail electricity prices ���������������������������������������������������������������� 84 3.4.2.2 Transparency ������������������������������������������������������������������������ 90 3.4.2.3 Market effectiveness ������������������������������������������������������������������ 93 CASE STUDY: Correlation between the market share, size of supplier and acquiring new consumers ��������������������� 100 3.4.2.4 Recommendations on supply prices, investigations and measures taken to promote competition ������ 103 3.5 Reliability of the electricity supply �������������������������������������������������������������������� 104 3.5.1 Monitoring balance of supply and demand ������������������������������������������������������� 104 3.5.2 Monitoring investment in production capacities in relation to the security of supply ����������������������� 105 3.5.3 Measures to cover peak demand and shortages of electricity ����������������������������������������� 106 2 CONTENTS 4 Natural gas ���������������������������������������������������������������������������������������� 108 4.1 The balance of natural gas supply and demand ���������������������������������������������������������� 110 4.1.1 Prenos zemeljskega plina �������������������������������������������������������������������� 111 4.1.2 Distribution of natural gas �������������������������������������������������������������������� 112 4.1.3 The use of compressed and liquefied natural gas and other gases from distribution systems ����������������� 117 4.1.3.1 Compressed natural gas in transport ����������������������������������������������������� 117 4.1.3.2 Liquefied natural gas ����������������������������������������������������������������� 118 4.1.3.3 Other energy gases from distribution systems ��������������������������������������������� 119 4.2 The regulation and regulated services ����������������������������������������������������������������� 119 4.2.1 Unbundling ������������������������������������������������������������������������������� 119 4.2.2 Technical functioning ����������������������������������������������������������������������� 120 4.2.2.1 Balancing services ������������������������������������������������������������������� 120 4.2.2.3 Planning of non-daily metered off-takes �������������������������������������������������� 123 4.2.2.4 Multi-year development of the transmission network ���������������������������������������� 124 4.2.2.5 Security and reliability of operation and quality of supply ������������������������������������� 127 4.2.3 The network charges for gas transmission and distribution systems ������������������������������������ 128 4.2.3.1 Setting the network charge ������������������������������������������������������������ 128 4.2.3.2 The network charge for the natural gas transmission system ����������������������������������� 130 4.2.3.3 The network charges for the natural gas distribution systems ���������������������������������� 130 4.2.4 Capacity at border points ��������������������������������������������������������������������� 133 4.2.5 Ensuring compliance with energy legislation ����������������������������������������������������� 139 4.3 Promoting competition ���������������������������������������������������������������������������� 139 4.3.1 Wholesale market �������������������������������������������������������������������������� 139 4.3.1.1 The level of market transparency �������������������������������������������������������� 141 4.3.1.2 The level of market effectiveness �������������������������������������������������������� 141 4.3.2 Retail market ������������������������������������������������������������������������������ 144 4.3.2.1 Retail natural gas prices �������������������������������������������������������������� 145 4.3.2.2 Market transparency ����������������������������������������������������������������� 149 4.3.2.3 The level of market effectiveness �������������������������������������������������������� 150 4.3.2.4 Recommendations on supply prices, investigations and measures to promote effective competition ��� 157 4.4 Security of supply �������������������������������������������������������������������������������� 157 CASE STUDY: Gas supply on 12 December 2017 after a crisis event in Austrian gas hub ������������������������������� 159 5 Consumers protection ������������������������������������������������������������������������������� 160 5.1 Protection of electricity and natural gas consumers ������������������������������������������������������� 162 5.1.1 Consumers’ complaints and dispute settlement ��������������������������������������������������� 163 5.1.2 Consumer protection in administrative procedure ������������������������������������������������� 164 5.1.3 Monitoring the electricity and natural gas market �������������������������������������������������� 166 6 Energy efficiency ����������������������������������������������������������������������������������� 168 6.1 Final energy savings achieved with contributions from suppliers �������������������������������������������� 170 6.1.1 Energy efficiency obligation scheme in Slovenia ��������������������������������������������������� 170 7 Heat supply ���������������������������������������������������������������������������������������� 174 7.1 Supply of heat ����������������������������������������������������������������������������������� 176 7.2 Heat distribution systems �������������������������������������������������������������������������� 181 7.3 Price of heat �������������������������������������������������������������������������������������
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